Martin Lewis issues warning to anyone with a debit card - and says you should use credit instead

Martin Lewis has advised individuals to ditch their debit cards in favour of credit cards, citing the latter's superior benefits. Speaking on his BBC Sounds podcast, the Money Saving Expert founder responded to a listener's question, highlighting that credit cards can be "more powerful" when used correctly.

The consumer finance guru and regular face on ITV, Mr Lewis, laid out three key principles that can render a credit card more advantageous than its debit counterpart. He reiterated his well-known advice: use credit cards only if you're able to "pay it off in FULL every month".

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Mr Lewis explained the dual nature of credit cards: "A credit card has two purposes. Its first purpose is a transactional card, it's a method of transacting and paying for things. Its second purpose is a debt card. If you can neuter its ability to charge you interest, and effectively neuter its debt ability, you can turn it into a transactional card."

He pointed out that credit cards generally offer lower interest rates than overdrafts associated with debit cards, noting that while the average high street bank overdraft rate hovers around 40 per cent, typical credit card interest rates are closer to 20 per cent.

Emphasising the cost-effectiveness of credit over debit, he stated: "A credit card is often cheaper debt than a debit card". The financial expert, who founded the influential Money Saving Expert website, concluded by stressing the importance of paying the full balance, avoiding cash withdrawals, and not exceeding the credit limit, reports Birmingham Live.

Using an interesting metaphor, he compared this approach as "incredibly powerful consumer jui-jitsu" and offered